Identity theft definition
Identity theft and fraud are terms used to refer to all types of crime in which someone wrongfully obtains and uses another person’s personal data in some way that involves fraud or deception, typically for economic gain[1]. When we think of identity theft we have images of shady characters lurking in the shadows who perpetrate fraud upon us for the purposes of stealing our personal information.
Identity theft awareness
As a result we’re often remiss in really understanding who has access to our personal information and what an assumed trusted source can legally do with it. Did you know that when a company goes bankrupt, your personal information can be sold to the highest bidder, leaving you potentially exposed to identity theft?
Identity theft company bankruptcy
According to David Fraser, a privacy law expert at McInnes Cooper, when a company goes bankrupt, it is legally obligated to sell off its assets in order to pay off its creditors. Although information is not property like a computer or a printer, records are considered an asset of the business and can be sold. However, the conditions of the privacy policy usually still hold, and the data can only be used for the purposes for which it was originally collected. Although this sounds like your personal information would remain secure, that is not always the case.
Nicholas Johnson, a professor at Sheridan College, reviewed the privacy policies of about 30 websites and uncovered some startling information. He looked closely at what kinds of information companies were asking for and what protections they offered, if any, in the event of a reorganization. He then detailed how personal information can easily fall into the wrong hands.
- Most companies have privacy policies that allow for customer data to be transferred to a third party in the case of bankruptcy or a restructuring
- Almost every company requested email address, first name and last name from its customers
- In about 10 cases, companies asked customers to opt-in to email notifications or for credit card information
- Few companies actually detailed what would happen to this information if the company was sold
Identity theft is a real problem and the number of victims is growing at an alarming rate. We need to be more diligent about safeguarding our personal information. What, if anything, are you doing to protect your personal information?
Problem from identity theft
If you’ve been a victim of identity theft and are now experiencing serious financial problems or have serious debt issues for any reason, contact the Ira Smith team as soon as possible. We work with individuals and companies throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Don’t let debt ruin your life. Contact us today.